Premium pay refers to the higher wages given to employees who work less desirable hours. This includes holidays, weekends, vacation days or anything over eight hours a day. According to rules set forth by the Fair Labor Standards Act, premium pay needs to be ordered in advance. That means premium pay would need to be ordered and approved before the holiday or weekend when you need your workers on hand. The only exception would be if there are compelling reasons for why premium pay needs to be offered immediately. Every employee needs to be eligible for premium pay. No one can be excluded from receiving it. Additionally, someone who has the power to give overtime pay to employees is not allowed to give overtime pay to himself or herself.
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